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Iconix financial results affected by exchange rates in third quarter

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today Nov 10, 2015
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Iconix Brand Group, Inc. announced Monday its financial results for the third quarter and nine months of 2015 ended September 30, 2015.

The company reported a 3% decrease in Licensing Revenue to $88.9 million, which was negatively affected by foreign currency exchange rates. There was no “Other Revenues” reported in the quarter compared to $18.7 million in the previous year’s comparable quarter related to a joint venture for the Lee Cooper and Umbro brands in China.

Lee Cooper, one of Iconix's brands


The company reported a 3% decrease in Licensing Revenue to $88.9 million, which was negatively affected by foreign currency exchange rates. There was no “Other Revenues” reported in the quarter compared to $18.7 million in the previous year’s comparable quarter related to a joint venture for the Lee Cooper and Umbro brands in China.
 
Adjusted EBITDA was approximately $30.5 million, a 53% decrease from $65.4 million in the prior year’s third quarter, and free cash flow attributable to Iconix for the third quarter of 2015 decreased 11% to $39 million from $43.9 million.

"I would like to reiterate that the underlying fundamentals of our business are strong," said Peter Cuneo, Chairman and Interim Chief Executive Officer of Iconix. "We have gone through a difficult transition period, but Iconix continues to have significant business strengths including its diversified portfolio of consumer brands, profitable business model and strong free cash flow generation.”
 
Iconix reported similar results for the nine months of 2015. Licensing Revenue decreased 7% to $279 million from $299.3 million also related to currency exchange rates, there was no “Other Revenues” in the nine month period, and adjusted EBITDA decreased 34% to $135.7 million from $206.8 million. Free cash flow increased 13% to $144.5 million from $128 million.
 
Cuneo continued, “All of us at the Company are focused on capitalizing on these strengths and addressing the issues that have impacted more recent performance to improve our results and enhance value for shareholders."

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